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Should You Consider Taking Up Loan Against Your Property?

Have you ever been in a situation where you did not have sufficient money to meet requirements wherein you need a large sum of money? You may avail of the required funds from your property. A Loan Against Property (LAP) is an excellent way to meet urgent fund requirements.

Understanding LAP
It is a secure loan available at a competitive rate of interest. Moreover, the eligibility criteria to avail of LAP are not very stringent with minimal documentation. Your property is used as collateral to secure repayment. It is important to ensure there is no existing mortgage on the property. A loan for property is available on commercial as well as residential properties.

Benefits of LAP
1.    Longer repayment tenure
You may repay the borrowed money in equated monthly installments designed as per your financial situation and cash flow. Lenders provide repayment tenure of up to 20 years to ensure you have no difficulties in repaying.

2.    Affordable
The loans against property interest rates are competitive, making it an affordable option. This is because it is a secured loan, where your property is used as security, which reduces the risk for the lenders.

3.    Higher loan amount
Financial institutions fund up to 90% of the market value of your property. You may borrow between INR 5 lakh and INR 10 crore as finance against property.

4.    No limitation on the use of funds
A home loan must be used to purchase a home. Similarly, an automobile loan must be used to buy a car. However, there is no limitation on how the loan against property funds may be used. This offers you the flexibility to use the money to meet huge expenses.
Application process
You may easily apply for the loan online directly through the lenders’ websites. All you need to do is fill up a simple application form and submit the documents. On verifying the same, the lenders will sanction and disburse the loan amount directly to your account. The loan against property eligibility criteria are listed below:
·         Minimum age 23 years
·         Maximum age at maturity 70 years
·         Good credit score
·         If salaried, you must have at least five years of work experience
·         Self-employed professionals must be in business for two years with a positive net worth
·         Clean loan history
Below is the list of loan against property documents required:
·         Income proof
·         Photo identity proof
·         Property documents
·         Address proof
Banks, as well as Non-Banking Financial Companies (NBFCs), offer such loans. It is a quick and hassle-free way to meet huge expenditures. Apply for a loan against property and unlock the value of your home today.
Should You Consider Taking Up Loan Against Your Property? Should You Consider Taking Up Loan Against Your Property? Reviewed by Rajesh singh on 1:06 PM Rating: 5